YANG WEI JENNIFER v. HSBC PRIVATE TRUSTEE (HONG KONG) LTD AND OTHERS

YANG WEI JENNIFER v. HSBC PRIVATE TRUSTEE (HONG KONG) LTD AND OTHERS

Because the plaintiffs are ordinarily resident outside Hong Kong, because enforcement in the USA would require separate proceedings and therefore involve delay and extra costs, and because the plaintiffs did not demonstrate a high probability of success sufficient to negate the protection afforded by security, it was just to order security for costs on a party-and-party basis: HK$3,000,000 for HCA5073/2001 and HK$1,200,000 for HCAP11/2002; failure to provide security results in stay of proceedings and eventual dismissal with costs.

Citation
YANG WEI JENNIFER v. HSBC PRIVATE TRUSTEE (HONG KONG) LTD AND OTHERS
Parties
1st Plaintiff in Hca5073/2001; Plaintiff in Hcap11/2002: Yang Wei Jennifer; 2nd Plaintiff in Hca5073/2001: Mannix Holdings Limited; Defendant in Hca5073/2001; 1st Defendant and Administrator in Hcap11/2002: HSBC Private Trustee (Hong Kong) Limited (formerly Bermuda Trust (Hong Kong) Limited); 3rd Defendant in Hcap11/2002: Albert Young Foundation Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
24 December 2008
Case Number
HCAP11/2002
Procedural Posture
Civil — Probate, Estate and Trust Disputes; Proprietary Claims / Pre Trial Application for Security for Costs (decision on Summonses Dated 5 November 2008)
Outcome
Applications for security for costs granted in part; proceedings stayed until security is provided; failure to provide security leads to dismissal; costs of the applications ordered nisi in favour of defendants.
Legal Topics
Security for Costs, Admissibility and Effect of Codicil, Resulting Trust and Proprietary Claims, Enforcement of Costs Orders Abroad, Overlap of Claim and Counterclaim, Stay and Dismissal for Non Compliance
Source Language
EN
Probate Trusts Civil Procedure Conflict of Laws (enforcement of Foreign Judgments) Security for Costs Admissibility and Effect of Codicil Resulting Trust and Proprietary Claims Enforcement of Costs Orders Abroad +2 more

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Parties

Yang Wei Jennifer

1st Plaintiff in Hca5073/2001; Plaintiff in Hcap11/2002

Mannix Holdings Limited

2nd Plaintiff in Hca5073/2001

HSBC Private Trustee (Hong Kong) Limited (formerly Bermuda Trust (Hong Kong) Limited)

Defendant in Hca5073/2001; 1st Defendant and Administrator in Hcap11/2002

Albert Young Foundation Limited

3rd Defendant in Hcap11/2002

Procedural Posture

Civil — Probate, Estate and Trust Disputes; Proprietary Claims / Pre Trial Application for Security for Costs (decision on Summonses Dated 5 November 2008)

Legal Issues

  1. 1 Whether Order 23 rule 1 permits security for costs against plaintiffs ordinarily resident outside Hong Kong
  2. 2 Whether enforcement of a Hong Kong costs judgment against a US resident would raise real difficulty or substantial obstacle
  3. 3 Whether the plaintiffs' prospects of success are such as to preclude an order for security for costs

Ratio Decidendi

Because the plaintiffs are ordinarily resident outside Hong Kong, because enforcement in the USA would require separate proceedings and therefore involve delay and extra costs, and because the plaintiffs did not demonstrate a high probability of success sufficient to negate the protection afforded by security, it was just to order security for costs on a party-and-party basis: HK$3,000,000 for HCA5073/2001 and HK$1,200,000 for HCAP11/2002; failure to provide security results in stay of proceedings and eventual dismissal with costs.

Court Disposition

Applications for security for costs granted in part; proceedings stayed until security is provided; failure to provide security leads to dismissal; costs of the applications ordered nisi in favour of defendants.

Orders

  • HCA5073/2001: Plaintiffs to provide security for defendant's costs up to and including trial by payment into court of HK$3,000,000 within 28 days or longer by agreement; until provided all further proceedings (including claim and counterclaim) stayed.
  • HCAP11/2002: Plaintiff to provide security for defendants' costs up to and including trial by payment into court of HK$1,200,000 within 28 days or longer by agreement; until provided all further proceedings stayed.